Quesu01 3-9 (Státic) Question porate income tax) Fighting Dyer Inc. had taxable
ID: 2808206 • Letter: Q
Question
Quesu01 3-9 (Státic) Question porate income tax) Fighting Dyer Inc. had taxable income of $20.9 million. Calculate Fighting Dyer's federal income taxes by using the corporate tax rate epopup window, E 1 tax due is$© (Round to the nearest dollar.) i Data Table Corporate Tax Rates 15% 25% 34% $0-$50,000 $50,001-$75,000 $75,001 $10,000,000 over $10,000,000 Additional surtax * 5% on income between $100,000 and $335,000 3% on income between $15,000,000 and $18,333,333 ter your answer in the answer box and then click Che in order to copy its contents into a spreadsheet.) OK Multimedia Library Financial Calculator @ 5Explanation / Answer
Taxable incom = $20.9 million = $20,900,000
The taxable income falls in the fourth row of the corporate tax rate table i.e. over $10,000,000
Tax amount for income upto $50,000 = $50,000*15% = $7,500
Tax amount for income from $50,001 to $75,000 = ($75,000 - $50,000)*25% = $6,250
Tax amount for income from $75,001 to $10,000,000 = ($10,000,000 - $75,000)*34% = $3,374,500
Tax amount for income above $10,000,000 = ($20,900,000 - $10,000,000)*35% = $3,815,000
Additional surtaax = ($335,000 - $100,000)*5% + ($18,333,333-$15,000,000)*3% = $111,750
Total tax due = $7,500 + $6,250 + $3,374,500 + $3,815,000 + $111,750 = $7,315,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.